How about giving vets a heath insurance plan they can use anywhere, then take all physical assets of the VA and do an IPO on the NYSE. Money raised goes to pay off debt.
There are critical and necessary services that ONLY the VA provides.
For instance there's a combined Substance Abuse and PTSD program called "Seeking Safety" that could not realistically be replicated in a civilian environment.
It just wouldn't be realistic to put combat PTSD patients in a group with adults that suffered child abuse and expect anyone to get anything out of it. Certainly not the vet, as the program and the facilitator would rape-victim centric.
That's a singular example of MANY.